Question

Why does MRP Safety Stock Replenishment run late?

  • 30 March 2023
  • 5 replies
  • 224 views

Userlevel 4
Badge +9

Can someone explain to me why MRP is delaying the ordering of a part that has fallen below safety stock?

The example below has a safety stock of 130 and NO inventory at time of running MRP (with the Plan Safety Stock checkbox enabled)

The resulting purchase requisition has a wanted date in the future that gives a latest order date beyond the MRP run date - Why?

I would have expected the requisition wanted to be ASAP i.e. Today plus order lead time

 


5 replies

Userlevel 6
Badge +17

@KIMKIMANDREW ,

when we check ‘Plan safety stock receipt considering MRP run date’  while running MRP, the supply proposals will be created with latest order date as MRP run days and wanted delivery date is MRP run date + lead time as you specified. This is working as expected when tested from my end.

Could please check action proposals where you can find few more details on MRP actions. Also, try to re-run MRP once again for this part and check whether you get a same result.

Regards,

Mithun K V 

Userlevel 6
Badge +12

Hi,

Over the last years there have been some bug fixes/improvements in this area. But as Mithun writes, these days, for purchased parts if they have a primary supplier, we really use the purchasing date logic when dealing with this. Perhaps you @KIMKIMANDREW don’t have the latest fixes here.

Cheers,

Mats

Userlevel 2
Badge +5

Hi @majose 

 

We experience a similar issue as above and have some questions.

When in time was the functionality of the tick box “Plan Safety Stock Receipt considering MRP Run Date” changed? We went from app10 upd5 to upd17 in June and have after this experienced that this check box has (from our point of view) stopped working.

Previously it was called “Plan Safety Stock Receipt on MRP Run Date” and the system calculated backwards to refill safety stock asap as soon as it went below safety stock level. Today it places a new purchasing demand on the date it is below safety stock level + purchasing lead time. This causes a lot of issues for us with safety stock levels far below the accepted level, mainly for parts with long lead times and inconsistent call offs from customer.

 

I’ve checked through the Enhancements Spreadsheet for the updates that is relevant for us but cannot see this as a documented change. Is this an intended change and if so, why was there a functional change and planning receipt on run date removed? 

 

 

Thanks!

Josefin Strandh

Userlevel 6
Badge +12

Hi Josefine,

Actually we got massive critics about how it used to be. But of course all customers are different.

So customers said, why do you create an unrealistic PO Req Line with due date today, when we don’t even have a demand, and they also said, please use the purchase order date logic when setting the due date so “things” get realistic.

If there are demands coming in in the near future, MRP will always adjust the PO reqs so projected onhand reaches the safety stock level. In this case you sometimes get PO reqs with start date that are past due. As you know safety stock is the sort of adjusted zero onhand level in the MRP engine.

Lesson learned: It feels like we need a parameter: Replenish up to Safety Stock ASAP (fly in the stuff NOW) - no matter if you have demand or NOT. OR use the system as it is currently working.

Cheers,

Mats

Userlevel 2
Badge +5

Hi @majose ,

 

Thank you for your quick response! It is very appreciated.

 

The issue for us is that we are working a lot with Distribution Orders, material commitments and safety stock. The scenario above makes perfect sense if you are working with a make to order process and no material commitments to your customers.

We have material commitments to our customers (hence wanting safety stock levels to be filled asap as they drop below target level, regardless of demand or not) and the supplier (another site in our own organization in this case) have in most cases the parts we want to purchase on stock as well. The lead time we have entered in the system is a lead time that applies if the supplier need to manufacture the parts, but as mentioned the lead time does not have to be this long. In the newly developed functionality we always get the exact lead time, and it will never trigger asap demand that we 9 out of 10 times can meet.

 

Can you please let me know when this change was applied? Was it documented and communicated in any release note? We must have missed it.

 

Also, appreciate if you have any suggestion on way of working to achieve the same or similar result in a DO process flow as the MRP safety stock tick box was working before. 

 

Regards,

Josefin

 

 

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